Negotiating on a new build?
Discussion
Just wondering if anyones had an experience negotiating on a new build home? is that even possible? i've no experience buying a new build, the house were looking at is 1/2 million quid which is steep, we'd probably look at the govt help to buy scheme to take the pressure off for the first few years, seems like a no brainer 100K interest free loan... assuming we meet the eligibility and all that!
I'm sure, on the one of the various EU leaving threads and the share tips thread, that the homebuilders have been taking some big hits.
I'm sure they'd be keen to offload some of the more expensive stuff, so I would start with a bit of a rude offer.
Of course, there's the whole new builds are s
t and you'd be better off spending your money on something that isn't a new build.
You can still get a help to buy mortgage on 'used' property.
And, to be honest, at a time where house prices are out of control and hitting all sorts of new highs, I probably wouldn't even entertain a new build for the the fact that they are always the hardest hit when the next house price crash/recession comes around. And because you pay such a premium for it being new in the first place, they eventually settle down to what similar size/spec houses are going for in the area anyway, which is almost always less.
Around here. the new builds from a development back in early 2000 have only just got back to asking price/break even for the owners, and lots are being sold. They increased up to 2007, but it all went tits up after 2008. Anyone who had to sell from 2008-2012 made a big loss. And that's in a desirable area as well. A 2 bed flat would have been around £180k +. Some poor sods sold up for £120-140k. There are some on now at incredibly unlikely prices, but I doubt they'll sell.
I'm sure they'd be keen to offload some of the more expensive stuff, so I would start with a bit of a rude offer.
Of course, there's the whole new builds are s
t and you'd be better off spending your money on something that isn't a new build.You can still get a help to buy mortgage on 'used' property.
And, to be honest, at a time where house prices are out of control and hitting all sorts of new highs, I probably wouldn't even entertain a new build for the the fact that they are always the hardest hit when the next house price crash/recession comes around. And because you pay such a premium for it being new in the first place, they eventually settle down to what similar size/spec houses are going for in the area anyway, which is almost always less.
Around here. the new builds from a development back in early 2000 have only just got back to asking price/break even for the owners, and lots are being sold. They increased up to 2007, but it all went tits up after 2008. Anyone who had to sell from 2008-2012 made a big loss. And that's in a desirable area as well. A 2 bed flat would have been around £180k +. Some poor sods sold up for £120-140k. There are some on now at incredibly unlikely prices, but I doubt they'll sell.
Look in to help to buy carefully before going for it. There are a few schemes but one of the "interest free" ones is based on the value of the house when you sell/remortgage, so if the value has gone up, you owe more than you borrowed.
Could work out to be a very high effective interest rate.
When I bought a new build 2.5 years ago I got a small cash discount (~1.5%) and all available "upgrades" included. This was not long before the end of the financial year for the developer.
Could work out to be a very high effective interest rate.
When I bought a new build 2.5 years ago I got a small cash discount (~1.5%) and all available "upgrades" included. This was not long before the end of the financial year for the developer.
thanks all, sounds like money off is a possibility, all the 4 houses at this price are unsold and built, there are another 3 at £550k ones built and 2 off plan - none sold yet either so i guess that goes in my favour.
i've done some research on the help to buy thing and i looks like the 2 big gotchas are thet you have to pay them back at the % rate of the equity rather than the actual figure, on a new build i image the chance for growth is minimal anyway, plus i can buy into that from the tax payers point of view - i.e. the govt taking a slice of my captal growth, after all thats what investing is all about. The main issue seems to be you need to have a special HTB mortgage and the rates are not that competitive 4.4% versus 2.1%, but then is 4.4% on 200K and 0% on 100K better that 2.1% on £300k? probably not, but i can't get the £300 i need due to my 2 car loans.
don't want to start a new build debate, i'd happily buy a pre-owned house, theres just nothing in our chosen area in budget that ticks all the boxes, this one house with its builders premium if the only thing that gets close.
i've done some research on the help to buy thing and i looks like the 2 big gotchas are thet you have to pay them back at the % rate of the equity rather than the actual figure, on a new build i image the chance for growth is minimal anyway, plus i can buy into that from the tax payers point of view - i.e. the govt taking a slice of my captal growth, after all thats what investing is all about. The main issue seems to be you need to have a special HTB mortgage and the rates are not that competitive 4.4% versus 2.1%, but then is 4.4% on 200K and 0% on 100K better that 2.1% on £300k? probably not, but i can't get the £300 i need due to my 2 car loans.
don't want to start a new build debate, i'd happily buy a pre-owned house, theres just nothing in our chosen area in budget that ticks all the boxes, this one house with its builders premium if the only thing that gets close.
If it's a major developer and a stock plot, find out when their year end is. Tell them you want to complete before that date and go for a discount. I would start at 10 percent but expect no more than 5. Sales managers have limited discretion, sales director more and md more again.
Most sales directors are hard cases when it comes to negotiation. Mine rarely bothered me for a buyer that wanted more than she could give.
Large companies are target driven and bonus is often generous but related to sales volumes and profit.
Small developers will need the cash in to service debt and release profit.
No chain and you are in a strong position.
Most sales directors are hard cases when it comes to negotiation. Mine rarely bothered me for a buyer that wanted more than she could give.
Large companies are target driven and bonus is often generous but related to sales volumes and profit.
Small developers will need the cash in to service debt and release profit.
No chain and you are in a strong position.
Nano2nd said:
i've done some research on the help to buy thing and i looks like the 2 big gotchas are thet you have to pay them back at the % rate of the equity rather than the actual figure, on a new build i image the chance for growth is minimal anyway, plus i can buy into that from the tax payers point of view - i.e. the govt taking a slice of my captal growth, after all thats what investing is all about. The main issue seems to be you need to have a special HTB mortgage and the rates are not that competitive 4.4% versus 2.1%, but then is 4.4% on 200K and 0% on 100K better that 2.1% on £300k? probably not, but i can't get the £300 i need due to my 2 car loans.
The new build I mentioned above cost me £200k in November 2013. I've just sold it for £265k. If I did help to buy, which I was considering as it was "interest free", £13k would have gone. Which is way more than the interest I paid due to it being in my mortgage.Do the sums very carefully!
Also consider the remortgage when the "interest free" period runs out.
Discounts are easily achievable depending on a few factors:
A) is the house fully built and ready to go
B) how long has it been for sale
C) what are competing properties selling for
You will only get a decent discount from a builder if the house is built and has been on the market for a reasonable period with no interest.
I achieved a 15% discount plus stamp duty and interior fixings on a property we bought before the current one we live in.
My view is if you don't feel embarrassed putting the price forward then it's not low enough.
A) is the house fully built and ready to go
B) how long has it been for sale
C) what are competing properties selling for
You will only get a decent discount from a builder if the house is built and has been on the market for a reasonable period with no interest.
I achieved a 15% discount plus stamp duty and interior fixings on a property we bought before the current one we live in.
My view is if you don't feel embarrassed putting the price forward then it's not low enough.
As others have said it depends upon your position, the plot, their year end, their targets etc
Generally Sales have 5% to play with.
Equally remember you have to live there - we gave a big discount off a plot but it was in a shady corner, facing a brick wall - no doubt the buyer thought they'd done well, we thought we'd have to sell it to a Housing Association !
Generally Sales have 5% to play with.
Equally remember you have to live there - we gave a big discount off a plot but it was in a shady corner, facing a brick wall - no doubt the buyer thought they'd done well, we thought we'd have to sell it to a Housing Association !
V8RX7 said:
As others have said it depends upon your position, the plot, their year end, their targets etc
Generally Sales have 5% to play with.
Equally remember you have to live there - we gave a big discount off a plot but it was in a shady corner, facing a brick wall - no doubt the buyer thought they'd done well, we thought we'd have to sell it to a Housing Association !
Ha yes. Been there a few times. Generally Sales have 5% to play with.
Equally remember you have to live there - we gave a big discount off a plot but it was in a shady corner, facing a brick wall - no doubt the buyer thought they'd done well, we thought we'd have to sell it to a Housing Association !
Dan_1981 said:
We bought last August I think it was and moved in about a month ago.
We got:
Stamp duty paid
All appliances
Carpeted & floorings through out
Front turf.
Legal fees
and we also used their 100% part ex-scheme.
out of interest which builder was that with? i'm looking at a morris homeWe got:
Stamp duty paid
All appliances
Carpeted & floorings through out
Front turf.
Legal fees
and we also used their 100% part ex-scheme.
Nano2nd said:
Dan_1981 said:
We bought last August I think it was and moved in about a month ago.
We got:
Stamp duty paid
All appliances
Carpeted & floorings through out
Front turf.
Legal fees
and we also used their 100% part ex-scheme.
out of interest which builder was that with? i'm looking at a morris homeWe got:
Stamp duty paid
All appliances
Carpeted & floorings through out
Front turf.
Legal fees
and we also used their 100% part ex-scheme.
Some interesting comments on here and I wonder what if anything people could add to my dilemma.
Looking to move, this is really for a future investment type thing, I don't have a pension provision (the mrs does) and we want to buy a bigger nicer home to live in and hopefully gain a few quid, but over that pay off an asset over time.
We have looked at various properties in the 600k bracket and maybe I'm being silly but they really aren't much better than ours, which has just gone on the market yesterday for 460k and already has 3 viewings. Widen the search to 800k and the houses are starting to become nicer, however there's always a problem. On a main busy road, needs loads of work, bizarre parking arrangements among other things.
So I have noticed a new development near us called at Luke's park. There is an un built house which isn't sold yet for 750k. It is IMO the best plot on the site, large, garden gets sun all day, they are built to what looks like a very high standard, really nice and IMO much better a buy than the other older stuff. This one is 2200sq ft and for us perfect.
I spoke to a sales woman today who basically gave a flat no to any type of deal at all until the house is built and has hung around for a while, which of course she doesn't expect as the bloke who was in before me was also interested
They have been for sale for a while and this has not sold (don't know why not tbh, one on a smaller plot with n facing garden has sold).
It's up for 750k which tbh is about 50k more than is like to do. Apart from waiting about to see if it sells or not is there anything I can do? I'm hoping mine goes pretty quick. In my area houses like mine seem to sell really quick.
Builder is countryside and they expect completion in jan 17
Looking to move, this is really for a future investment type thing, I don't have a pension provision (the mrs does) and we want to buy a bigger nicer home to live in and hopefully gain a few quid, but over that pay off an asset over time.
We have looked at various properties in the 600k bracket and maybe I'm being silly but they really aren't much better than ours, which has just gone on the market yesterday for 460k and already has 3 viewings. Widen the search to 800k and the houses are starting to become nicer, however there's always a problem. On a main busy road, needs loads of work, bizarre parking arrangements among other things.
So I have noticed a new development near us called at Luke's park. There is an un built house which isn't sold yet for 750k. It is IMO the best plot on the site, large, garden gets sun all day, they are built to what looks like a very high standard, really nice and IMO much better a buy than the other older stuff. This one is 2200sq ft and for us perfect.
I spoke to a sales woman today who basically gave a flat no to any type of deal at all until the house is built and has hung around for a while, which of course she doesn't expect as the bloke who was in before me was also interested
They have been for sale for a while and this has not sold (don't know why not tbh, one on a smaller plot with n facing garden has sold).
It's up for 750k which tbh is about 50k more than is like to do. Apart from waiting about to see if it sells or not is there anything I can do? I'm hoping mine goes pretty quick. In my area houses like mine seem to sell really quick.
Builder is countryside and they expect completion in jan 17
so your first post is trying to score yourself a grand off the back of someone else's post, nice
as a follow up i did manage to negotiate a discount, £5k... plus stamp (£14k) and free grass, carpets and the outside tap lol
thought i'd done okay, however turns out i didn't negotiate hard enough, now we've been in 6 months and got to know the neighbours it seems like we got the worst discount - doh! so my advice to anyone buying a new build is be really offensive with your offers
as a follow up i did manage to negotiate a discount, £5k... plus stamp (£14k) and free grass, carpets and the outside tap lol
thought i'd done okay, however turns out i didn't negotiate hard enough, now we've been in 6 months and got to know the neighbours it seems like we got the worst discount - doh! so my advice to anyone buying a new build is be really offensive with your offers
sehrawat.sandeep said:
HI All
Have recently booked a Crest New Build home.
Have 2 vouchers worth 1000 pounds each.
If any one is reserving Crest Property please
do let me know and you can get 1000 pounds discount
on the property.
You can reach me at sehrawat.sandeep@gmail.com
Thanks
A mate of mine is a managing director at Crest. He reads these threads. Have recently booked a Crest New Build home.
Have 2 vouchers worth 1000 pounds each.
If any one is reserving Crest Property please
do let me know and you can get 1000 pounds discount
on the property.
You can reach me at sehrawat.sandeep@gmail.com
Thanks
Are the vouchers even transferable? plus negotiating a lot more than £1k off a new build is Childs play.
sehrawat.sandeep said:
HI All
Have recently booked a Crest New Build home.
Have 2 vouchers worth 1000 pounds each.
If any one is reserving Crest Property please
do let me know and you can get 1000 pounds discount
on the property.
You can reach me at sehrawat.sandeep@gmail.com
Thanks
(works for crest homes)Have recently booked a Crest New Build home.
Have 2 vouchers worth 1000 pounds each.
If any one is reserving Crest Property please
do let me know and you can get 1000 pounds discount
on the property.
You can reach me at sehrawat.sandeep@gmail.com
Thanks
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